Appeal details
Counselvise Citation
[2018] 140 COUNSELVISE.COM (IT) 316852 (SC)
Assessee PAN
Bench
Appeal Number
Appellant
Respondent
Pronouncement Date
17-04-2018
Judgement Text
"1 IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO(S). 3873/2018 (@ SLP(C) No.31847/2017) M/S AKAY FLAVOURS AND AROMATICS (P) LTD APPELLANT(S) VERSUS THE PRINCIPAL COMMISSIONER OF INCOME TAX RESPONDENT(S) & ANR. O R D E R Leave granted. We have heard the learned counsel for the parties. The appellant/assessee had filed its return for the Assessment Year 2011-12 wherein it claimed deduction under Section 10B of the Income Tax Act, 1961 (for short 'the Act'). The Assessing Officer allowed the same. However, the Commissioner of Income Tax in exercise of his power under Section 263 of the Act served a notice upon the appellant/assessee proposing to revise the assessment order on the ground that deduction of the amount under Section 10B of the Act has to be allowed from the total income and not from the business income. The appellant filed its objections thereto which were rejected by the Principal Commissioner vide order dated 24.03.2016 and the Assessing Officer was directed to re-examine the facts of the case and pass appropriate orders. This order was challenged by the appellant/assessee before the Income Tax Digitally signed by ASHWANI KUMAR Date: 2018.04.25 14:41:11 IST Reason: Signature Not Verified 2 Appellate Tribunal which dismissed the appeal following the decision of the Kerala High Court in CIT Vs. Patspin India Ltd. reported in 245 CTR 97. In further appeal, the High Court has also taken the same view vide impugned order dated 19.07.2017. Learned counsel for the appellant/assessee has drawn our attention to the judgment of this Court in the case of Commissioner of Income Tax & Anr. Vs. Yokogawa India Limited (2017) 2 SCC 1, wherein this Court has held that the deductions under Section 10A would be prior to the commencement of the exercise to be undertaken in Chapter VI of the Act for arriving at the total income of the assessee from the gross total income. Following the judgment, this Court has set aside the aforesaid judgment of the Kerala High Court in C.A. No. 8549 of 2013 decided on 11.10.2017. We, accordingly, set aside the impugned judgment and dispose of this appeal in terms of the judgment in the case of Commissioner of Income Tax & Anr. Vs. Yokogawa India Limited (2017) 2 SCC 1. ......................J. [A.K. SIKRI] ......................J. [ASHOK BHUSHAN] NEW DELHI; APRIL 17, 2018. 3 ITEM NO.7 COURT NO.6 SECTION XI-A S U P R E M E C O U R T O F I N D I A RECORD OF PROCEEDINGS Civil Appeal No(s). 3873/2018 @ SLP(C) No.31847/2017 M/S AKAY FLAVOURS AND AROMATICS (P) LTD Appellant(s) VERSUS THE PRINCIPAL COMMISSIONER OF INCOME TAX Respondent(s) &ANR. (FOR ADMISSION ) Date : 17-04-2018 This appeal was called on for hearing today. CORAM : HON'BLE MR. JUSTICE A.K. SIKRI HON'BLE MR. JUSTICE ASHOK BHUSHAN For Appellant(s) Mr. Joseph Markose, Sr. Adv. Mr. Atul Shankar Vinod, Adv. Mr. Dileep Pillai, Adv. Mr. Ajay K. Jain, Adv. Mr. Vikas Pathak, Adv. Mr. M. P. Vinod, AOR For Respondent(s) Mr. Nikhil Rohatgi, Adv. Mr. Shashank Khurana, Adv. Ms. Annapoornani, Adv. Ms. Diksha Rai, Adv. Ms. Kanika Saran, Adv. Mrs. Anil Katiyar, AOR UPON hearing the counsel the Court made the following O R D E R Leave granted. The appeal is disposed of in terms of the signed order. Pending application(s), if any, stands disposed of accordingly. (ASHWANI THAKUR) (MALA KUMARI SHARMA) COURT MASTER (SH) COURT MASTER 4 (Signed order is placed on the file) "
AI Insights
The case involves M/S Akay Flavours and Aromatics (P) Ltd, the appellant, contesting a decision by the Principal Commissioner of Income Tax regarding the application of deductions under Section 10B of the Income Tax Act, 1961 for the Assessment Year 2011-12. Initially, the Assessing Officer allowed the deduction, but the Commissioner later revised this decision, stating the deduction should be from total income and not business income. This revision was upheld by the Income Tax Appellate Tribunal and the Kerala High Court. However, the Supreme Court, referencing its own earlier decision in Commissioner of Income Tax & Anr. Vs. Yokogawa India Limited, overturned these decisions, setting a precedent that deductions under Section 10A/10B should be made before arriving at the total income.
